Global Light Vehicle Sales Poised for Modest Growth in
2013

OXFORD, England--Jan. 28, 2013: After a solid 2012, where Global
light vehicle sales increased to 81 million units -- a 5
percent increase over the previous year -- LMC Automotive
forecasts a slower expansion for 2013. Sales are expected to rise by 3
percent to 83 million units this year.

In 2012, regional performances varied strongly, however. Markets in
North America and much of Asia faired well while those in Europe and, to a lesser degree, South America, suffered from underlying economic
weakness, poor consumer confidence and on-going political/economic
uncertainty.

"While some large markets have performed solidly in 2012, notably in the
U.S. and China, the key macro-economic
risks that prevailed during 2012 look likely to persist well into 2013 with
negative implications, and an unbalanced risk profile, for Europe," said Pete
Kelly, Managing director of LMC Automotive. "In our view, this
regional variation will also be a feature for 2013."

Europe

West European light vehicle markets, having fallen in total by 9 percent
in 2012, look likely to deteriorate further in 2013, with a drop in the 2-5
percent range - the baseline forecast being for a 3 percent drop to 12.7
million units. Some stabilizing offset has come from Eastern Europe, notably Russia where sales were up by 11 percent in
2012, but there is risk that growth in Eastern
Europe may slow sharply in 2013.

"While some European manufacturers have performed well through broad
geographical diversity and strength in premium and export markets, those
tied closely to the performance of European markets will find the going
tough in 2013. Inventory accumulation in the context of continued
overcapacity may haunt a number of European OEMs this year and beyond,"
said Justin Cox, head of European Production
Forecasting at LMC Automotive's Oxford, UK
office.

North America

In the U.S., continued recovery from the depths of the 2009 crisis led
to a surge in light vehicle sales, to 14.5 million units in 2012, up by 14
percent. Encouragingly, the selling rate continued to improve throughout
the year, ending on a high note of over 15 million units in December. North
American light vehicle sales in 2013 are expected at 17.8 million units, an
increase of 4 percent from 2012 as the U.S. market posts further growth at
a slower rate.

"The U.S. faces the hurdle of the budget and spending debate, but
otherwise is set to be one of the few bright spots of the major markets
around the world in 2013," said Jeff
Schuster, senior vice president of LMC Automotive in the U.S. "It
has been several years since the market faces more upside potential than
downside risk."

Asia Pacific and China

China light vehicle sales (including
imports) rose year-on-year by 6.2 percent to 19.1 million units in 2012,
which was higher than the annual growth rate of 4.4 percent in 2011. This
improvement was largely due to the phase-out of pay-back effects from the
booming car sales during 2009-10, particularly in the light commercial
vehicle sector. With the anticipated more favourable economic environment
in 2013, the light vehicle market is expected to reach 21 million units, a
10 percent increase over 2012.

John Zeng, LMC Automotive's Asia Pacific director in Shanghai commented, "With a change in political
leadership being formalized in early 2013, the positive impact of the
political-business cycle should provide support for vehicle demand. The
sales momentum that started to rebuild in Q4 2012 also indicates a good
start for the light vehicle market in Q1 2013".

Meanwhile, other markets in the region are poised for further growth.
India and the ASEAN region performed well
in 2012, with ASEAN light vehicle sales rising by 40 percent and sales in
India up by 12 percent. The outlook for
2013 is favourable for continued growth in the region.

"We are likely to see slower growth in the Asia Pacific region this year. While growth
would remain relatively strong in China,
India and Indonesia, 2013 looks to be a tough year for
most other markets in the region. With the end of government incentives
that propped up the market last year, vehicle demand is expected to decline
in Japan and Thailand," said May Arthapan, Asia Pacific director of LMC's Bangkok office.

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